The company is hamstrung by it's government clients- the clients are not technologically savvy enough to be able to understand what is 'good'. AT times regulations simply prevent them from doing so.
No review process implemented to review performance. Aside from rewarding strong employees, a performance review process would aid in weeding out lackluster managers.
Overall, not the worst place to be for a starter job. But an aggressively apathetic approach to raises and internal promotions make it a poor choice to try and start one's career at.